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Can you spot a debt consolidation scam?

If your debt is overwhelming, you may want to find a way out. When bankruptcy does not seem like a good idea for one reason or another, you may turn to a debt consolidation company for relief.

Debt consolidation companies have sprung up over the last couple of decades. These businesses promise to put all your debts together and sometimes lend you the money to pay them off. What this could do is give you a large loan with variable interest. Not surprisingly, some companies do not have your best interests in mind. Follow these tips to ensure you spot a debt consolidation scam before you get sucked in.

The company is aggressive

Any good debt consolidation company will encourage and guide you, not push you or make you feel bullied. If the company seems to be harassing, it could be a scam.

They ask for money upfront

If the company asks you to pay them a fee before they have done any work, take a step back. No legitimate company should expect payment with no work to show.

They suggest you stop making payments to creditors

One of the surefire signs of a scam is the advice that you need to stop paying your bills before any kind of loan or consolidation has occurred.

They tell you to cut off talks with credit cards

Maybe you have continued negotiations with creditors in an attempt to get them to make arrangements with you. If a debt consolidation company advises you to stop communicating with creditors, they probably do not want you to come to amenable terms.

They promise to cut your debt down

A debt consolidation company takes your current debt and gives you a loan to pay it off. It does not lower what you owe in any way. If a company makes this claim, steer clear.

Debt consolidation may seem like a better solution for your credit woes. However, when considering this route, stay aware of the pitfalls some companies present. Bankruptcy may wind up as the better solution for your situation.

*Disclaimer - Attorney Advertising. Under Federal Law, we have been designated a Debt Relief Agency and we help people file for bankruptcy relief under the Bankruptcy Code. This information is not intended as legal advice and no attorney-client relationship is created. Results may vary. Results not guaranteed.Dramatization - not actual clients in pictures and videos. Thomas C. McBride, attorney in Alexandria, LA.

 

 

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McBride Law Firm

McBride Law Firm
301 Jackson Street Suite 101
Alexandria, LA 71301

Phone: 318-625-0471
Phone: 318-625-0471
Fax: 318-445-8066
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